ISLAMABAD – The International Monetary Fund (IMF) on Tuesday agreed to extend for another three days the ongoing talks for setting new benchmarks for Pakistan to revive the $11.3 billion standby arrangement facility that is suspended since May last year.
The government had invited the IMF mission for talks to revive the suspended programme by finalising new benchmarks. However, both sides, led by Finance Minister Abdul Hafeez Shaikh and IMF Mission Chief for Pakistan Adnan Mazarei, decided to extend the talks as more time was required to finalise them.
Pakistan wants new benchmarks to get the letter of comfort from the IMF to get inflows from other bilateral and multilateral donors. Briefing reporters at the conclusion of the second day of policy-level talks, the finance minister said IMF authorities in Washington had agreed to extend the duration of ongoing talks for three more days on Pakistan’s request to make them result oriented. The talks, continuing since March 1, were supposed to conclude by Tuesday evening. During the talks, the government assured the IMF mission that Pakistan would finalise measures to be taken during the current month and beyond.
Mazarei called the talks fruitful, adding that Pakistan and the IMF were on the same page and the IMF was cognizant of the difficulties faced by Pakistan. He said the IMF wanted to put Pakistan’s economy on a sustainable growth path and would continue discussion with Pakistani authorities. “Pakistan needs to take important measures for putting the economy on sustainable growth path to overcome the issues faced by the economy and the country.”
During the extended period the government is likely to finalise the modalities on the proposed revenue measures like imposition of 15 percent flood surcharge on income tax and 2.5 percent special excise duty and other measures in the power and petroleum sectors. The minister said after the devastating floods in August last year, Pakistan’s budget deficit was feared to increase to eight percent of the GDP.
